Raytheon to Update Navy Missile Defense Systems Under Potential $466M Contract

Raytheon (NYSE: RTN) has been awarded a potential five-year, $466.4M contract to update, repair or replace four kinds of missile defense system being used by the U.S. Navy.

The undefinitized contract action has a $246.5M initial value and will include configuration, inventory and obsolescence management services for the military branch’s close-in weapon system, land-based variant of Phalanx CIWS, rolling airframe missile and SeaRAM platform, the Department of Defense said Friday.

DoD noted the award contains two base years and a three-year option that would extend work through August 2024.

Naval Supply Systems Command received one bid for the performance-based logistics requirements contract and will obligate annual Navy working capital funds upon issuance of each task order.

Work will take place in Louisville, Ky., and is initially scheduled to conclude in August 2021.

The Phalanx weapon system is designed to help sailors defend surface combat vessels against close-in threats and anti-ship missiles. RAM is a guided missile launcher intended for supersonic defense efforts, while SeaRAM combines the features of both systems and works to counter supersonic threats as well as drones, cruise missiles and aircraft.

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